Tag Archives: Commercial Real Estate

CBRE Capital Markets was 2012's top seller of multifamily loans, according to a release from Freddie Mac.

Fannie Mae maintained its position as the largest source for multifamily financing in 2012 after providing $33.8 billion to the sector.

The percentage of banks reporting stronger demand for mortgage loans dropped in the first quarter from the fourth quarter last year, and a slightly greater percentage are reporting easing lending standards, the Federal Reserve Reported Monday. In the case of "traditional" mortgage loans, 4.6 percent of banks reported standards easing somewhat. While the survey results suggest a direction of lending standards, they could be misleading: A bank which has tightened lending standards as much as possible may not ease them but cannot tighten further.

Commercial and multifamily originations increased 24 percent from 2011 to 2012, according to the Mortgage Bankers Association.

Economic activity "expanded" in the closing weeks of 2012, the Federal Reserve said in its periodic Beige Book released Wednesday, reflecting a slow but steadily declining unemployment rate and low rates of inflation--conditions the Fed said would have to be met before it raises interest rates. According to the report, "real estate activity has expanded or held steady in 11 Districts for existing home sales and leasing; eight Districts for residential construction; 11 Districts for nonresidential sales and leasing; and nine Districts for nonresidential construction."

What does the commercial real estate sector have to look forward to in the coming year? Not much, if the fiscal cliff isn't averted, according to a study from commercial real estate (CRE) services provider Cassidy Turley. While dropping over the fiscal cliff would likely cause some serious problems for CRE, the firm also predicts a successful resolution of the problem could build on 2012's gains in GDP and employment, propelling the economy (and the office market) further forward.

In Bethany, Missouri, AmeriBid LLC is preparing to preside over the bank-ordered sale of a very unusual property--a medium security prison. Recently announcing plans for a sealed-bid auction in 2013, AmeriBid's regional director Don Gabriel put a positive spin on the proceedings, noting that the 14.56-acre spread was "a great opportunity to own a multi-use property between Kansas City and Des Moines."

Outstanding commercial/multifamily debt increased in the third quarter, marking a full year of quarterly increases, according to the Mortgage Bankers Association (MBA). In dollar volume, commercial/multifamily mortgage debt rose $6.6 billion over the quarter, bringing the national total to $2.38 trillion. The greatest third-quarter increase in commercial/multifamily debt was seen in agency and GSE portfolios and mortgage-backed securities, a sector that reported an increase of $9.4 billion.

North Carolina-based FMI has released the results of its 2013 U.S. Markets Construction Overview, and the company is heralding more than $1 trillion in construction-put-in-place (CPIP) by 2014. Noting near-term projections, FMI stated that CPIP is anticipated to hit $826 to $884 billion to end 2012, with the growth rate remaining slightly ahead of gross domestic product (GDP) growth rates in 2013.

Amid an improving commercial real estate market, the National Association of Realtors (NAR) predicts declining vacancy rates in all sectors of commercial real estate in the coming year. The greatest vacancy decline is expected among office properties. Office vacancies should fall about one percentage point over the year, dropping from 16.7 percent to 15.7 percent. While the smallest vacancy decline is expected in the multifamily sector, NAR states there is "a full recovery already in the multifamily market."